My early October readings are in, and clearly Americans are back to work thanks to the Trump Economic Revolution. And as interest rates rise, retired and soon to be retired investors can rejoice in the long-awaited Interest Rate Revolution.
CNBC explained the good news for America’s economy here:
The number of Americans filing for unemployment benefits fell to a near 49-year low last week, pointing to sustained labor market strength, which should continue to underpin economic growth.
The labor market, which is viewed as being near or at full employment, is steadily boosting wage growth, which could help to support consumer spending as the stimulus from the Trump administration’s $1.5 trillion tax cut package fades. Initial claims for state unemployment benefits dropped 8,000 to a seasonally adjusted 207,000 for the week ended Sept. 29, the Labor Department said on Thursday.
Data for the prior week was revised to show 1,000 more applications received than previously reported. Claims fell to 202,000 during the week ended Sept. 15, which was the lowest level since November 1969.
Economists polled by Reuters had forecast claims slipping to 213,000 in the latest week. The Labor Department said claims for South and North Carolina were affected by Hurricane Florence, which lashed the region in mid-September.
The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, rose 500 to 207,000 last week.
With more hiring has come higher wages as well. The NFIB reports that in September 37% of small businesses were raising compensation for their employees. James Freeman reports in The Wall Street Journal:
Few Americans would say that they’re actually sick of winning, but you can add one more positive report to the recent run of upbeat readings on the nation’s economy. The latest monthly survey from the National Federation of Independent Business finds widespread raises as small firms try to attract and retain talent in a historically tight labor market.
NFIB Chief Economist William Dunkelberg says that a record 37% of small businesses in September “reported raising overall compensation in hopes of hiring and retaining needed employees. There are more job openings than job seekers, and the competition for qualified workers is pushing up compensation, especially for the better trained and educated employees.”
“Job creation picked up again in September, rising to a net addition of 0.15 workers per firm,” adds Mr. Dunkelberg, who notes that the demand for workers is intense across a range of industries.
Read more here.
